Mankind Pharma (MANKIND)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth robust: 20.46% latest and 14.46% 5-year CAGR
• High promoter holding of 72.66% keeps ownership aligned
• Piotroski F-Score 8/9 indicates solid operational discipline
• Altman Z-Score 3.43 suggests low near-term bankruptcy risk
• Moderate leverage with Debt/Equity of 0.55

Concerns

• Very expensive: P/E 49.96, P/B 6.60, EV/EBITDA 208.33
• Profit declined 12.84% despite 20.46% sales growth, showing margin pressure
• Free cash flow deeply negative at -₹10,211 Cr
• Dividend yield negligible at 0.04%, so return depends solely on price

AI Analysis

When I look at Mankind Pharma, I first see growth: sales up 20.46%, with a 14.46% five-year revenue CAGR. Promoter holding of 72.66% aligns owners with minority shareholders, and the Piotroski score of 8/9 plus Altman Z of 3.43 tell me the company is not in financial distress. Debt/equity of 0.55 is manageable, and ROCE of 15.98% is decent. But growth without profit is not enough. Net profit fell 12.84% while sales grew strongly – that suggests margins are being squeezed and I cannot see a durable moat. The latest quarter's ₹414 Cr profit on ₹3,567 Cr sales does not justify a P/E of 49.96 or an EV/EBITDA of 208.33. Graham's formula yields a fair value of ₹587.08 against the current ₹2,291.85; that is a margin of safety of -282.85%. Free cash flow is -₹10,211 Cr, a severe red flag for a company valued at ₹92,782 Cr. And with a dividend yield of only 0.04%, the investor must rely entirely on a price that already prices in flawless execution. This is a fast-growing story, but at this valuation there is no margin of safety. I would wait for margins to recover, cash flow to turn positive, and the price to offer a sensible entry point.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer